Should ANY CBP be in a bathroom??? 
Take your pick of the code section:
Article 240 Overcurrent Protection
240.24 Location in or on Premises.
(D) Not in Vicinity of Easily Ignitible Material. Overcurrent devices shall not be located in the vicinity of easily ignitible material, such as in clothes closets.
240.24
(E) Not Located in Bathrooms. In dwelling units, dormitories, and guest rooms or guest suites, overcurrent devices, other than supplementary overcurrent protection, shall not be located in bathrooms.
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Rob, what is meant by what I bolded above?
Thanks I knew no bathrooms, I think ever. Old GESCO guy here.
Nothing like a few hot/steamy showers to create an explosion… … …
Say you had a sauna, steam unit or some other equipment in the bathroom and it had it’s own supplemental OCPD built into the unit by the manufacturer that would be permitted.
Rob, how about a washroom though, where clear space is not negated.
A washroom or laundry room would be permitted if it weren’t being used a clothes closet or it weren’t in a bathroom. In commercial buildings we install panels in rooms with slop sinks quite often.
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Thank you, Rob…that helps me understand. 
I was going back to earlier NEC editions where afci protection was only needed in bedrooms. There was discussion about the closet not being part of the bedroom. In a related relationship, is the master bath part of the bedroom?
Thanks, I had the same question. 
The builder will “fix” it by removing the shelving and hanger bar from the closet, thus rendering it no longer a “clothes” closet, but now a utility closet. If clearances are adequate he can probably get away with it.
That will help, but still leaves the machines in the workspace.
Oh. I misinterpreted the phrase laundry closet and didn’t realize that it was “The Laundry”. I see the connections right there. You are correct.